Is falling in love worth $72,082.57? According to RateSupermarket.ca's 6th annual Cost of Love study, it may just cost you that much when you find your soulmate.
TORONTO, Feb. 5, 2018 /CNW/ - According to the 2018 Cost of Love study from RateSupermarket.ca, the cost of a relationship from the first date to the "I do's" is $72,082.57, up eight per cent from last year.
The sixth annual study calculated the average costs associated with a one-year dating period, a one-year engagement period, and a wedding. And according to this year's study, the cost of a wedding with a honeymoon to follow averages $46,401 – accounting for almost two-thirds of the cost of love alone.
For the first time, RateSupermarket.ca also polled Canadians to gauge how they felt about spending this type of money on their nuptials.
When asked if they'd prefer to spend over $45,000 on a wedding or spend that money elsewhere, 45 per cent of survey respondents said they'd rather use the money towards a down payment on a home. Only six per cent said if they were engaged, they'd use that money towards a wedding.
"When preparing for life's milestones as a couple, like getting married and having a family, finances have to be considered," said Janine White, Vice-President of Marketplaces at RateSupermarket.ca. "While spending $45,000 on a celebratory event may make sense to one of you, the other person may want to invest in a home. Financial priorities between a couple may differ, but it's important to find common ground by creating a budget, making compromises, and finding ways to tackle debt together."
Contrary to popular belief, love does cost a thing
To find the total cost of love in 2018, RateSupermarket.ca analyzed the average cost of a relationship, considering expenses like fancy dinner dates, casual movie dates, getaways, engagement rings and parties, wedding attire, venues, and to top it all off – a honeymoon.
The year-over-year growth was mainly affected by slight surges in the cost of bride attire as well as rising food costs.
The Consumer Price Index (CPI), for example, indicated a 2.5 per cent increase in accessories and jewellery, a 1.7 per cent increase in footwear, and an almost three per cent increase in food prices between 2016 and 2017.
View the Cost of Love infographic here for all the details.
Budgeting for your big day
Almost half of survey respondents said they'd simply have a smaller wedding to cut costs (48 per cent), while 14 per cent said they'd prefer to have a celebratory dinner with friends and family as a cheaper alternative. When asked if they would delay their wedding or simply not marry to avoid the cost of a wedding, one out of 10 agreed.
If wedding price tags are giving you cold feet, here are some steps you and your partner can take to manage the cost of love effectively:
Make a financial plan along with your wedding plan
If you plan on spending the rest of your life with someone, it's important to talk about money prior to the big day. Discuss your spending and savings habits, establish a joint budget, and create a dedicated savings plan. This way, you can manage any debt the two of you may already have, and avoid accumulating any more from wedding costs.
Reward yourself for coming this far
Once you're engaged, apply for a rewards credit card that can earn cash back towards gas or groceries, or even points towards travel to help you pay for that honeymoon. To make things go by a little faster, create a joint account with multiple cards so both you and your significant other can make purchases that contribute to the rewards pool. But make sure you're able to pay off your balance in full at the end of each month to avoid expensive interest charges.
Invest in a bright future together
If you're looking forward to things like buying a house together and starting a family, you may want to look into high-interest savings options like GICs and TFSAs to give your savings a boost. As a bonus, make an agreement to put all cash wedding gifts into your savings as well.
About RateSupermarket.ca ( www.RateSupermarket.ca )
Launched in 2008, RateSupermarket.ca is Canada's one-stop shop for the best rates on personal finance products; offering over 7 million Canadians the best mortgage rates, credit cards, bank accounts and GIC rates. RateSupermarket.ca is a division of Kanetix Ltd.
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